According to Adam Smith, international trade was a "win-win" situation since all nations could enjoy gains from trade.

Question

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Adam Smith's theory of comparative advantage suggests that even if a country can produce all goods more efficiently than another country, it is still beneficial for them to trade and specialize in the production of goods in which they have a comparative advantage. In this way, all countries can benefit from trade and it is considered a "win-win" situation.

According to Adam Smith, International Trade Was a "Win-Win" Situation